Analyst Warns Silver Price Could Drop To $64 If This Key Level Fails

Silver price sits near a crucial technical moment as the metal attempts to stabilize after a volatile period. The market climbed back above an important technical level that traders often watch closely. That move brought some optimism to the chart. The bigger question now focuses on whether silver price can maintain that level or whether another decline may appear before a stronger recovery begins.

Market analyst Oren Elbaz examined the silver chart and described two possible outcomes for the precious metal. His analysis focuses on whether silver price establishes a bottom near $80 or falls toward a deeper correction zone that could reach $64.

Silver price recently moved back above its 50-day moving average. That technical level often acts as a short-term indicator that shows whether buyers regain control of the trend. A daily close above that line can signal improving market structure if the price holds the position.

Oren Elbaz explained that this recovery above the 50-day moving average represents a constructive step for the silver chart. Technical traders often watch that level closely because repeated closes above it show that demand exists near the current price region.

Source: @thesilverhermit / X

Silver price stability around that area therefore becomes an important signal during the coming sessions. Continued strength could confirm that the market has begun to stabilize after the recent correction phase.

Technical patterns also appear on the longer timeframe chart. The current silver structure resembles a cup and handle formation, although the shape does not match the traditional textbook version perfectly. Elbaz described the pattern as slightly irregular because silver price behavior during the past two years produced unusual swings.

A successful bottom near $80 would keep that broader bullish structure intact. Such a pattern usually forms after a large consolidation period before the market attempts another upward phase.

Silver Price Drop Below $64 Could Signal A Deeper Correction Phase

Another scenario deserves attention if silver price fails to maintain its recent recovery. Oren Elbaz warned that a decline below $64 could indicate a longer correction period for the precious metal.

Technical charts show that $64 represents a major support level from previous market cycles. A breakdown below that region would invalidate the current bottoming structure and signal that sellers have regained control of the trend.

Silver price corrections often develop in stages. A failure near the current zone would suggest that the market requires more time to reset before a new upward cycle can begin. Elbaz believes that such a correction could extend across the summer months if that lower support level comes into play.

Historical silver price movements provide context for this possibility. The metal frequently moves through extended consolidation phases before the next large breakout appears. Those phases allow markets to clear excess leverage and rebalance supply conditions.

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Current silver price action therefore sits at an important decision point. A stable base around $80 would support the bullish structure described on the chart. The cup and handle pattern would remain valid if the metal continues to defend that zone and hold above the 50 day moving average.

A different outcome could appear if selling pressure increases again. Failure to maintain the current range would open the door to the deeper support area near $64 that Elbaz described.